Regression Project: Data The table below contains the price, demand, and total cost data for the...

Regression Project: Data

The table below contains the price, demand, and total cost data for the production of x widgets. Here p is the price (in dollars) of a widget for an annual demand of x widgets, and C is the annual total cost (in dollars) of producing x widgets per year.

Demand x (widgets)	Price p ($/widget)	Total Cost C ($)
10	141	609
20	133	1103
30	126	1618
40	128	2109
50	113	2603
60	97	3111
70	90	3619
80	82	4103
90	79	4601
100	53	5114

Regression Project: Cost

Use the given data to find a regression line C = m x + b that best fits the total cost data for total annual cost C as a function of the annual number of widgets produced x. Here, total cost is the dependent variable, and number of widgets is the independent variable. Find the regression function for cost, and write it as C ( x ) = m x + b.
Use the data to make a scatter plot. Include your regression line on the same plot. Adjust the max/min to display the data in a reasonable way. On the plot, be sure to
- Make a title for the plot "Annual Total Cost of Producing Widgets".
- Label your axes. Label the horizontal axis "Annual widget production", and label the vertical axis "Annual total cost ($)".
Does it look like the regression line models the data well? Why or why not?
Use the regression function you found to estimate C ( 0 ), C ( 35 ), and C ( 105 ). Give the real-world interpretation of the result of each computation in complete sentences. Be sure to include units.
Using your regression function for cost, what is the fixed cost? What is the variable cost? Give the real-world interpretation of the result of each computation in complete sentences. Be sure to include units.

Expert Solution

milcah answered 2 years ago

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